Featured

Mastercard: Cryptocurrencies and CBDCs are the future of money



Published
* Mastercard noted that adoption rates for emerging payment options such as cryptocurrencies have historically been higher in Asia.

* Consumers in Thailand and India are more accustomed to using cryptocurrencies than those in a highly developed market such as Australia.

* With nearly every central bank exploring or testing CBDC, Mastercard remains optimistic about its widespread adoption sooner rather than later.

Whatever your position on cryptocurrencies, the fact remains that these digital assets are gradually establishing a foothold in the world of payments. Simply put, cash will not always reign supreme, and that is a belief shared by Mastercard, a global payments leader. Indeed, Mastercard has begun offering its customers access to cryptocurrency-linked debit, credit, and digital wallets, as well as loyalty rewards programmes powered by cryptocurrency.

Earlier this month, the multinational financial services corporation based in the United States partnered with three leading cryptocurrency service providers in Asia Pacific to launch the region's first crypto-funded Mastercard payment cards. The digital asset service providers — Hong Kong's Amber Group, Bitkub in Thailand, and CoinJar in Australia — have all begun accepting applications for crypto-linked Mastercard credit, debit, or prepaid cards in their respective markets within the region. They will then be able to instantly convert their cryptocurrencies to traditional fiat currency using these cards.

In an interview with Tech Wire Asia (TWA), Rama Sridhar, executive vice president, digital & emerging partnerships and new payment flows, Mastercard Asia Pacific, discussed the company's strategy in the digital assets space, focusing on cryptocurrencies and central bank digital currencies (CBDCs).

Mastercard was the first to enter the western market with cryptocurrency products and services. How has acceptance been so far, and how do you anticipate it will be in the Asia Pacific markets?

Globally, the Asian region has always had a higher rate of adoption of emerging payment options. There are, however, a few reasons why Asia is the world leader in this regard. To begin, according to Mastercard's New Payments Index, 94 percent of consumers in the Asia Pacific region are considering using emerging payment methods this year.

According to Mastercard, emerging payment methods include QR codes, digital wallets, buy-now-pay-later (BNPL) transactions, cryptocurrencies, and biometric authentication. Having said that, the desire and enthusiasm for adopting a new payment method is extremely strong in this part of the world. The second factor is a sizable Asian population that operates completely cross-border, whether through online purchases or physical travel. As a result, expectations for a more global, seamless, and interoperable framework are higher in Asia than in the majority of developed Western economies. Right.

Which country in the Asia Pacific region does Mastercard consider to be the most cryptocurrency-accepting?

In comparison to a highly developed market like Australia, there are more consumers in Thailand and India who are very comfortable using cryptocurrencies. Even Vietnam and Indonesia are growing at double-digit rates at the moment, which bodes well for emerging payment methods.

This in and of itself speaks volumes about Asia's developing economies, where the cash runway is extremely long. Not to mention the fact that, according to the United Nations, over 60% of the world's youth live in Asia-Pacific, totalling over 750 million young women and men aged 15 to 24 years.

Now, as cryptocurrency matures over the next three to four years, many of these play people will be adults or will have begun their careers. In summary, Asia Pacific is demographically primed for higher adoption rates, which is probably the most accurate assessment. As nearly 30% of the global value of crypto transactions occurs in Asia, the region is destined to be the global leader when it comes to the future of money.

What was the tipping point at which Mastercard decided to incorporate cryptocurrencies into its payment network?...

#cryptopirates #mastercard #stablecoins #cbdc #coinjar

PayPal Donation: https://www.paypal.com/paypalme/cryptopirates

BlockFi: https://blockfi.com/?ref=cc86230a
Borrow cash, and buy or sell crypto. There are no hidden fees, no minimum balances, and no reason to wait.

CoinSport: https://www.coinspot.com.au?affiliate=RJPZPV
Buy, Sell & Swap Cryptocurrency
The easiest way to buy Bitcoin (BTC) and a whole world of other digital currencies.

Mastercard: Cryptocurrencies and CBDCs are the future of money
Category
Cryptocurrencies
Be the first to comment